Sritex Shuts Down, 10,000 Workers Laid Off but May Get Jobs Back

Indonesia’s textile giant, PT Sri Isman Rejeki Tbk (Sritex), officially ceased operations on Saturday (March 1, 2025), resulting in the layoff of over 10,000 employees.

However, there is a glimmer of hope for the affected workers. Minister of Manpower Yassierli announced that within the next two weeks, former Sritex employees might be able to return to work and receive wages.

This statement came after Yassierli attended a high-level meeting at the Presidential Palace, led by President Prabowo Subianto. The meeting, which included several ministers, the bankruptcy curator team, and labor unions, aimed to find solutions to the crisis.

"In the next two weeks, laid-off workers will be re-employed. This will certainly bring relief to those affected," Yassierli said at the Presidential Office in Central Jakarta on Monday (March 3, 2025).

The opportunity for employment arises as Sritex’s asset curators plan to revive factory operations by leasing out the company’s assets.

Nurma Sadikin, a representative of the curator team, explained that since the asset auction process takes time, leasing out Sritex’s properties will help maintain their value. Investors have already shown interest in renting the assets.

By leasing these assets, new investors can utilize Sritex’s facilities for textile production, thereby creating temporary job opportunities for the laid-off workers.

President Prabowo Subianto had earlier instructed ministers, the curator team, and labor unions to find ways to address the wave of layoffs following Sritex’s shutdown.

"In the next two weeks, the curators will determine which investor will lease Sritex’s assets. This will help absorb labor, allowing laid-off employees to be rehired by the new tenant," Nurma explained.

One pressing question remains: Will former employees need to reapply for jobs once a new tenant takes over Sritex’s assets? Nurma declined to confirm.

According to her, recruitment decisions will be made entirely by the new lessee, not the curators. It remains uncertain whether all former workers will be reemployed automatically or need to go through a hiring process.

"The recruitment process will be handled by the new tenant, as curators are not responsible for hiring," Nurma emphasized.

Nurma also acknowledged that this employment opportunity is only a temporary solution. However, she noted that once the asset auction is completed, the winning bidder might continue the textile business and rehire former Sritex employees.

"If the winning bidder chooses to continue operations, they may rehire former workers. But for now, the employees will work under the new tenant," she concluded.

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